New policy to be applied in agro sphere
By Nigar Abbasova
Azerbaijan is currently engaged in drafting of a new policy for financing of the agricultural sector. The policy envisages upgrading the quality of financing in compliance with the international experience.
The Azerbaijani Agriculture Ministry and Frankfurt School of Finance and Management have already signed an agreement on the preparation of the policy.
Under the agreement, Frankfurt School will held an analysis of the existing financing system, prepare appropriate recommendations as well as develop new loan products for agriculture.
The school offers 3 directions of financing which include the improvement of the financing structure in the sphere of agriculture, preparation of financing mechanisms as well as improvement of competitiveness of the country’s agricultural sphere.
The main objective of the first direction is to increase the efficiency and productivity of the budgetary financing. The second direction is considered for the improvement of leasing and loan products in accordance with the requirements of borrowers. The third direction is expected to make the sphere of agriculture more attractive for the financial institutes.
The project is being realized within the framework of the World Bank-funded "Agriculture Competitiveness Increasing" project. The total value of the project which was adopted on September 30, 2013 amounts to $ 53.25 million.
The main objective of the project is to facilitate the access of agricultural producers to markets by strengthening sanitary and phytosantiary services, enhancing selected value chains, and providing financial services to agribusiness enterprises.
The project is expected to be completed on December 31, 2018.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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